Various business models for selling without inventory
Before you learn how to sell products without inventory, you’ll need to pick the right eCommerce business model.
Here are your top options:
Here are your top options:
- Print on Demand
- Dropshipping
- Selling digital products or services
- Affiliate stores
- Fulfillment by Amazon (FBA)
- Third-party logistics companies (3PL)
1. Print on Demand
Print on Demand enables you to create and sell custom merchandise without the hassle of holding inventory or managing production and shipping. Here’s how you can leverage Printfuse to start your POD business:
How It Works:
How It Works:
- Choose a Product: Browse the Printfuse catalog of white-label items, ranging from t-shirts and hoodies to wall art and home decor.
- Add Your Design: Upload your design or create one using Printfuse's design tools. Adjust its size and position, then add a product description and price.
- Create a Listing: Select a sales channel – whether it's the Printfuse Snapstore, an online marketplace, or an eCommerce storefront – and list your product.
- Sell Your Product: When a customer makes a purchase, Printfuse's Print Providers handle printing and shipping. You keep the profit after production and shipping costs.
- No upfront investment
- Free store setup with Printfuse Snapstore
- Easy scalability
- Simple setup process
- No inventory management
- Pay only for sold products, minimizing financial risk
- Product customization options
- Dependence on Print Provider quality
- Limited product catalog
- Longer order fulfillment times
2. Dropshipping
Dropshipping is a business model where you source products from wholesale manufacturers and sell them at a higher price in your online store. When a customer purchases something, your dropshipping partner sends the product directly to them. It’s a low-risk way to enter eCommerce since you don’t need to stock any products yourself or pay for them before they’re sold online.
Pros:
Pros:
- Extensive product selection
- High growth potential
- Easy setup process
- Low startup costs
- Highly competitive market
- Variable product quality
- Lack of branding and marketing control
- Smaller profit margins
3. Selling digital products
Selling digital products covers many categories and is an excellent way to earn passive income and avoid managing inventory. Depending on your particular niche, you’ll need some experience in digital editing or graphic design software.
Popular Digital Product Niches:
- Artwork and digital graphics
- Craft tutorials (e.g., knitting or sewing patterns)
- Photography editing presets
- Media (video, music, audio)
- eBooks and guides
- Software (downloadable or web-based)
- Professional services or online courses
Pros:
- No shipping logistics
- High sales potential
- Creative freedom
- Instant delivery
- No inventory management
Cons:
- Requires existing skills
- Lower per-sale profits in some niches
- Vulnerable to piracy
4. Affiliate programs
Profit from promoting other online businesses through affiliate programs. Affiliate marketers receive personalized links from companies they collaborate with and include them in their online content to promote sponsored products. Every time a viewer clicks on the affiliate’s unique link and buys the partnered product or service, the affiliate receives a commission – a percentage of the profit from each sale they help make.
Pros:
- Enhances social media presence
- Generates profit without business operations
- No upfront costs
Cons:
- Requires an established online audience
- Lack of control over product and store quality
- Variable profits depending on partnerships
5. Fulfillment by Amazon (FBA)
Fulfillment by Amazon (FBA) simplifies the selling process for independent sellers by providing storage space, packaging, and shipping services through Amazon’s extensive network of fulfillment centers worldwide.
While FBA operates similarly to a third-party logistics provider (3PL), it also offers the added advantage of Amazon's reputable brand and access to Prime shipping. To get started with FBA, create an Amazon seller account and log in to Seller Central. From there, you can add your product listings to FBA inventory.
After adding your listings, send your products to Amazon, making sure to adhere to their inventory shipping requirements and packing guidelines to ensure smooth automated fulfillment.
Pros:
- Added brand credibility and quality customer service
- Can offer special deals and discounts
- Added shipping location flexibility
Cons:
- Increased fulfillment costs
- Possible increased returns
- Must meet product preparation requirements
6. Third-party logistics (3PL)
Third-party logistics (3PL) is a model that allows businesses to outsource their inventory management to specialized processing companies. In this arrangement, merchants collaborate with 3PL providers who handle the storage, packaging, and shipping of merchandise on their behalf.
Similar to dropshipping, 3PL services offer warehousing, manage logistics, and fulfill customer orders for online retailers. This means you won’t need to manage your own inventory. However, it's important to note that 3PL providers do not manufacture products, so you will still need to find a production partner for that aspect
Pros:
- Potential cost savings
- Professional servicing
- Easier to scale operations
Cons:
- Less control over business image and customer service
- It is difficult to secure a like-minded and trustworthy 3PL
- Loss of potential in-house experience
Start selling custom products online with Printfuse.
Create a snapstore and sell products instantly!
Pros and Cons of Selling Online Without Inventory
Let’s explore the advantages and disadvantages of running an online store without inventory. While zero inventory makes it easier to manage your store, it’s important to carefully consider whether this approach aligns with your business goals and product offerings.
| Pros | Cons |
|---|---|
| Saves money in storage costs by not holding inventory. | Difficult to ensure product quality, as it’s managed by third-party suppliers. |
| Shipping is handled by professionals, making it easier. | More competition due to a low barrier to entry. |
| Limits initial setup costs and preparation, reducing startup expenses. | Fewer opportunities for variety in product selection. |
| Can be managed online with a smaller team, allowing flexibility. | Less control over delivery times and fulfillment locations. |
| More time for market analysis and focusing on strategy. | Handling returns and refunds can be more complicated when relying on external suppliers. |
How to sell online without inventory in 5 steps
Creating an online store without inventory involves careful planning and execution. Whether you're opting for a Print on Demand (POD) model, dropshipping, or selling digital products, you need a comprehensive strategy. Follow these steps to build a successful business with minimal upfront investment.
1. Choose a Niche and Products
Selecting the right niche is one of the most crucial decisions you’ll make when starting your online store. A niche helps you target a specific audience, stand out in a competitive market, and create tailored marketing strategies that resonate with potential customers.
According to a report from Statista, 53% of online shoppers say they prefer shopping with brands that speak to their specific interests, highlighting the importance of niche targeting.
Additionally, consider profitability. Your niche should not only be something you’re passionate about but also offer enough demand to sustain your business. Use keyword research tools like Ahrefs or SEMrush to identify high-volume search terms with low competition to help pinpoint your product focus.
Utilize platforms like AliExpress or Oberlo to find suppliers with good ratings and fast shipping times. Make sure to evaluate the product quality before listing them in your store.
According to a report from Statista, 53% of online shoppers say they prefer shopping with brands that speak to their specific interests, highlighting the importance of niche targeting.
How to Find the Right Niche
Start by assessing your interests, expertise, and passions. This will help you stay motivated and knowledgeable about your products. Next, conduct market research to find gaps in the market or underserved audiences. Look for trends using tools like Google Trends, explore online forums, and check social media for insights.Additionally, consider profitability. Your niche should not only be something you’re passionate about but also offer enough demand to sustain your business. Use keyword research tools like Ahrefs or SEMrush to identify high-volume search terms with low competition to help pinpoint your product focus.
How to Choose the Right Products
Once you've selected your niche, it's time to choose products that align with it. For POD, you can create designs for t-shirts, hoodies, mugs, and phone cases. For dropshipping, focus on trending products that fit your audience's needs.Utilize platforms like AliExpress or Oberlo to find suppliers with good ratings and fast shipping times. Make sure to evaluate the product quality before listing them in your store.
2. Set up your eCommerce store
Setting up an online store is easier than ever with user-friendly eCommerce platforms. Options like Shopify, WooCommerce, and Printfuse Snapstore offer robust tools and customization options.
Shopify
Shopify is one of the most popular platforms for entrepreneurs. It’s easy to use and has built-in payment gateways, which is helpful for those new to online selling. With themes and apps designed to help you scale, Shopify is ideal for both beginners and experienced sellers. A study from Oberlo found that Shopify stores generate over $200 billion in sales annually, making it a reliable platform for success.WooCommerce
For those who are comfortable with WordPress, WooCommerce is an excellent choice. This plugin offers a lot of flexibility, especially if you’re a DIY type of entrepreneur. You can customize the look of your store and add numerous functionalities through third-party plugins. WooCommerce powers over 28% of all online stores, showcasing its popularity and efficiency.Printfuse Snapstore
If you're focused on print-on-demand products, Printfuse Snapstore is an ideal platform. It allows you to create an eCommerce website without coding and seamlessly integrates with Printfuse's POD services. It’s designed to help entrepreneurs who want to set up a store quickly and start selling immediately, all while keeping inventory management to a minimum.Key Features to Look for in a Platform
- Ease of Use: Choose a platform that’s simple to set up and navigate.
- Customization Options: The ability to modify your store’s design helps you create a unique shopping experience.
- Payment Gateways: Ensure the platform supports your preferred payment methods, such as PayPal, Stripe, or credit card processing.
- Mobile Optimization: With mobile eCommerce on the rise, ensure your platform offers mobile-responsive themes.
3. Finding Reliable Suppliers
The key to a successful business without inventory is partnering with reliable suppliers. Whether you’re going for dropshipping or POD, choosing the right supplier is essential for customer satisfaction.
For POD
With Print on Demand, you’ll need to partner with a POD service provider who handles printing, packing, and shipping. When choosing a POD provider, consider the following factors:- Product Quality: Ensure the products are high-quality and meet customer expectations.
- Shipping Times: Look for providers who offer quick and reliable shipping. Slow fulfillment can result in poor customer experiences.
- Pricing: Compare pricing to ensure your margins are sufficient after accounting for production and shipping costs.
- Customization Options: A good POD provider should allow for various design options, from colors to print placement.
For Dropshipping
When sourcing products for dropshipping, focus on:- Supplier Reputation: Check reviews, testimonials, and their communication responsiveness.
- Shipping Times: Work with suppliers who offer fast shipping, especially if you want to stay competitive in a fast-moving market.
- Inventory Levels: Ensure that the suppliers maintain adequate stock to avoid backorders or customer disappointment.
4. Market your online business
Marketing is what drives traffic to your store and generates sales. Here’s how to effectively market your store:
SEO: Optimize Your Website for Search Engines
Search Engine Optimization (SEO) is essential for organic traffic. By optimizing your product pages and blog content with the right keywords, you can increase your store’s visibility on search engines like Google. Use tools like Google Keyword Planner or Ubersuggest to find relevant keywords. Additionally, ensure your website has:- Meta tags and descriptions for each product page.
- Alt text for images, which is important for Google image search.
- Fast loading speed, as slow sites can hurt your ranking and user experience.
🎦Content Marketing: Engage Your Audience
Creating valuable content is a great way to build trust and attract customers. Whether it’s blog posts, videos, or podcasts, content marketing can position your brand as an authority in your niche. For example:
- Write blog posts that educate your audience about the products or the niche.
- Create tutorial videos to show your products in action.
- Develop social media content that showcases your brand story and engages customers.
Content marketing is proven to work—HubSpot reports that companies with active blogs see 67% more leads per month than those without.
📩Email Marketing: Build Relationships
Building an email list is one of the most effective ways to engage with potential customers. Use an email service provider like Mailchimp or Klaviyo to send out:
- Welcome emails to new subscribers.
- Newsletter updates with promotions, new product launches, and special offers.
- Cart abandonment emails to remind customers about products they left behind.
Email marketing has a high return on investment (ROI), with an average ROI of $42 for every $1 spent according to DMA.
🌐Social Media Marketing: Build Your Presence
Social media is a powerful tool for connecting with your audience. Platforms like Instagram, Facebook, and Pinterest are great for showcasing your products and building a community around your brand. Use these platforms to:
- Share high-quality images of your products.
- Create stories to engage with followers in a more casual way.
- Use relevant hashtags to increase visibility.
- Run contests or giveaways to boost engagement and attract new customers.
📢Paid Advertising: Boost Your Reach
Paid ads on platforms like Google Ads, Facebook Ads, and Instagram Ads are an excellent way to reach a broader audience. With targeted ads, you can put your products in front of potential customers who are already interested in what you offer. According to WordStream, businesses make an average of $2 in revenue for every $1 spent on Google Ads.
5 . Offer great customer service
Customer service is often the differentiator between a successful store and one that struggles. Great customer service can turn one-time buyers into repeat customers. According to a Zendesk report, 42% of consumers will spend more money with companies that offer excellent customer service.
Best Practices for Customer Service
- Clear Communication: Always respond to customer inquiries promptly and clearly.
- Fast Response Times: Customers appreciate timely responses to their issues. Aim for a response time of under 24 hours.
- Easy Returns and Refunds: Having a transparent return policy can make customers feel more confident about buying from your store.
- Personalization: Address customers by their name and tailor communication to their needs.
How to start an online store with no inventory: Choose Printfuse
Selling print-on-demand products has never been easier with Printfuse. No inventory, no upfront costs, and no hassle—just your designs turned into branded merchandise in five simple steps.
- Sign Up for Printfuse
Create your free Printfuse account to gain access to all the tools and resources needed to launch your online store without holding any inventory. - Design Your Products
Browse through over 500+ print-on-demand products in the Product Catalog. Use Printfuse’s intuitive Product Customizer to upload your designs, and save once everything looks perfect. - Order Product Samples
Head to the product page on your Printfuse dashboard to order sample items. Check the product quality and verify delivery times to ensure everything meets your expectations. - Connect Your Online Store
Integrate Printfuse with your preferred eCommerce platform, including Shopify, WooCommerce, and more. You can even create your store for free with Printfuse Snapstore. - Publish and Start Selling
Set your price, write a compelling title and description, then publish your product. When a customer places an order, we’ll take care of printing and shipping it directly to their door.
Start selling custom products online with Printfuse.
Create a snapstore and sell products instantly!
